I recently spoke with an owner of a waterfront lot on Lake Barkley who wanted to list their lot for sale at twice what they had paid for it in 2008. They had been told the lot would appreciate and become quite valuable in time. Reluctantly, I explained to them that I could not help them. The amount they were asking was much too high for the type and location of their lot, but just as important to them, there are few waterfront lot buyers in the market now. That translates into a "fire sale" price or a lengthy time on market. Neither appealed to them. After we concluded our discussion I decided to check the Western Kentucky Regional MLS database to find out how many waterfront lots had been sold this year compared to previous years. Below are the figures for waterfront lot sales in Trigg and Lyon counties combined from the first of the year through July 31 of each year.
2014 - 9 sales 2013 - 9 sales 2012 - 7 sales 2011 - 7 sales 2010 - 10 sales 2009 - 7 sales
Based upon these figures it would appear that the normal rate of sales for the first 7 months is going to be around 8 or 9 lots sold. Compare that to the previous years, including the year our owners bought their lot.
2008 - 17 sales 2007 - 39 sales 2006 - 28 sales
Obviously the market demand for waterfront lots was high until the real estate market drop in 2008. Since then demand has declined dramatically. Will demand return to the highs of 2006 and 2007? Not likely. Will those investors and retirees return to purchase waterfront lots? It does not appear to have happened yet. We will review the sales trend at the end of the year to see if we can find an improving market.